Boomtowns '06: Hottest Small Cities

1 Yuma, Arizona
Once a small farming community, this border town is one of the nation's fastest-growing areas, with a burgeoning Latino population and a steady stream of Californians in search of a lower cost of living. Surging trade with Mexico has sparked strong growth in services and transportation.

2 St. George, Utah
Located in the state's scenic southwest corner, St. George is a magnet for both retirees and young families. That's sparked businesses in a range of industries--from IT and business services to manufacturing and retail and wholesale trade.

3 Fort Walton Beach-Crestview, Florida
Growth in this panhandle community is driven by low taxes and good weather. It's also home to an estimated 350 technology firms, which do brisk business with contractors at Hurlburt Field and Eglin Air Force Base.

4 Coeur d'Alene, Idaho
With its picturesque lakes and stunning vistas, Coeur d'Alene has long been a top vacation spot. Now it's drawing refugees from pricey, high-regulation places like California (see "The Buck Stopped Here"), spurring growth in services and manufacturing.

5 Bellingham, Washington
With the San Juan Islands to the west and Mount Baker looming to the east, Bellingham attracts urban refugees, who have launched hundreds of small service firms, manufacturers, and consultancies.

6 Port St. Lucie-Fort Pierce, Florida
Tourism remains a major force on Florida's Atlantic coast but recent action is in the sciences, spurred by facilities like a U.S. Department of Agriculture research lab and the Smithsonian's marine research station.

7 Naples-Marco Island, Florida
Collier County's population has jumped more than 55,000, to 307,000, since 2000, making the region the nation's leading destination for young, single, and educated people in terms of net migration. That's sparked major growth in industries like health care and financial services, drawing newcomers like M&I Bank, which recently opened a local facility.

8 Idaho Falls, Idaho
With a revitalized downtown district, Idaho Falls is big on small-town charm. But it also boasts a diverse band of high-tech companies primarily revolving around the Department of Energy's Idaho National Laboratory.

9 Casper, Wyoming
A bona fide energy boomtown, Casper has benefited from an influx of construction and manufacturing companies serving the state's oil and natural gas industries. Labor is in such short supply that the city is recruiting laid-off Detroit autoworkers.

10 Bremerton-Silverdale, Washington
For years, Bremerton's waterfront was nothing more than a parking lot for the city's top employer, the Puget Sound Naval Shipyard. Boarded-up buildings have been replaced with retail stores thanks to a harborside development program that includes a $47 million conference center, hotel, and condo complexes.

11 Panama City-Lynn Haven, Florida
Tourists pump nearly $1.5 billion into the economy, providing more than 14,000 jobs. Uncle Sam also provides a boost, with an Air Force base and Naval Support Center that farm out business to local contractors.

12 Morgantown, West Virginia
Home to West Virginia University, Morgantown is a magnet for the health care industry. Major employers include two large hospitals, several government labs, and companies such as generic drug maker Mylan.

13 Prescott, Arizona
Settled during the gold rush days of the 1800s, Prescott is experiencing a boom among seniors. They're drawn to the city's numerous retirement communities, mild climate, and historic downtown area.

14 Bend, Oregon
Bend's population has more than tripled, to about 70,000, over the past 15 years, with refugees from Portland and California drawn by a scenic location and low cost of living. The influx has transformed a timber-based economy, bringing in manufacturing, aerospace, and semiconductor firms.

15 El Centro, California
Located in the state's southeast corner, El Centro has been riding the same global trade wave as other U.S. border towns. It also owes its growth to the Department of Homeland Security, which has boosted its hiring of security and customs personnel to police the busy border with Mexicali.

16 Logan, Utah
Logan's longtime meatpacking plants and dairy processors have been joined by a host of biotech and communications firms drawn by the brainpower of Utah State University and a shiny new fiber optic infrastructure.

17 Punta Gorda, Florida
Local firms have created 2,200 new jobs over the past two years, many of them in health care, IT, and specialty contracting tied to rebuilding after last year's hurricanes. Relatively low home prices attract newcomers.

18 Greeley, Colorado
Historically an agricultural powerhouse, Greeley, located about 60 miles northeast of Denver, has made a new-economy transition, with a top-notch acute-care facility in the area, two ethanol plants on the way, and a strong manufacturing presence. The city has seen 14 percent growth in service jobs since 2003.

19 Winchester, Virginia
Located 80 miles outside Washington, D.C., and home to Shenandoah University, Winchester is absorbing people priced out of northern Virginia communities like Fairfax. Growth has been particularly robust among federal government agencies, which boosted employment nearly 20 percent in 2005.

20 Laredo, Texas
A manufacturing and trading center, this Texas border town boasts a growing banking industry and Texas A&M University. With the assembly plants of Nuevo Laredo due south, trade is driving the population of "los dos Laredos" toward one million.